Balance Sheet Components

12 Months Ended

Dec. 31, 2019

Balance Sheet Related Disclosures [Abstract]

Inventories

Inventories consisted of the following (in thousands):



	December 31, 2019		December 31, 2018
Raw materials	$	9,504	$	279
Work in process	49,307		14,395
Finished goods	1,386		2,844
Total inventories	$	60,197	$	17,518

Balance Sheet Classification
Inventories	$	4,101	$	7,873
Inventories, noncurrent portion	56,096		9,645
Total inventories	$	60,197	$	17,518

We began capitalizing inventory for costs associated with Andexxa Gen 1 and Gen 2 supply upon FDA approval on May 3, 2018 and December 31, 2018, respectively. We began capitalizing inventory for costs associated with Bevyxxa during the fourth quarter of 2018 when it was determined that the inventory had a probable future economic benefit. As of December 31, 2019 and 2018, long-term inventories of $56.1 million and $9.6 million, respectively are classified as prepaid and other long-term assets as these inventories are not expected to be sold within the next twelve months, and the amount is deemed recoverable.

As of December 31, 2019 and 2018, we have made prepayments to manufacturers for the purchase of inventories. We classify prepayments to manufacturers as short or long-term assets based on whether the related inventories are expected to be utilized in the manufacturing process and/or sold within the next twelve months. As of December 31, 2019 and 2018, long-term prepaid manufacturing assets of $4.7 million and $10.9 million, respectively, are classified as prepaid and other long-term assets.

We recorded an excess and obsolescence inventory charge of $17.8 million and $12.6 million to cost of sales during 2019 and 2018, respectively. In developing our inventory reserve estimate, we consider forecasted demand, current inventory levels and our firm purchase commitments. If it is determined that inventory utilization will further diminish based on estimates of demand compared to product expiration, additional inventory write-downs may be required. See Note 14, "Costs from Wind Down of Bevyxxa Activities" for additional details of charges recorded in 2019 related to the planned wind down of the Bevyxxa project.

Property and Equipment

Property and equipment consists of the following (in thousands):



	December 31, 2019			December 31, 2018
Computer equipment	$	1,546		$	1,335
Capitalized software	1,940			1,322
Equipment	8,600			8,737
Leasehold improvements and others	8,304			8,143
Total acquisition costs	20,390			19,537
Less accumulated depreciation and amortization	(16,126		)	(14,301		)
Property and equipment, net	$	4,264		$	5,236

Accrued and Other Liabilities

Accrued and other liabilities consist of the following (in thousands):



	December 31, 2019		December 31, 2018
Manufacturing related	$	11,485	$	5,465
Compensation and employee benefits	16,099		10,794
Product revenue reserves	7,680		329
Current portion of lease liabilities	4,715		—
Accruals for sponsorship	4,433		—
Others	5,361		5,722
Total accrued and other liabilities	$	49,773	$	22,310